SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of April 2009
FOMENTO
ECONÓMICO MEXICANO, S.A.B. DE
C.V.
(Exact
name of Registrant as specified in its charter)
Mexican
Economic Development, Inc.
(Translation
of Registrant’s name into English)
United
Mexican States
(Jurisdiction
of incorporation or organization)
General
Anaya No. 601 Pte.
Colonia
Bella Vista
Monterrey,
Nuevo León 64410
México
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F x Form
40-F o
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as
permitted
by Regulation S-T Rule 101(b)(1): _______
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as
permitted
by Regulation S-T Rule 101(b)(7): _______
Indicate
by check mark whether by furnishing the information contained in
this
Form, the registrant is also thereby furnishing the information to the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
o No
x
If "Yes"
is marked, indicate below the file number assigned to the registrant
in
connection
with Rule 12g3-2(b): 82-_____________
SIGNATURES
Pursuant to
the requirements of
the Securities Exchange Act
of 1934, the
registrant has
duly caused this report to
be signed on its behalf of the
undersigned,
thereunto duly authorized.
.
| FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V. | |||
|
|
By:
|
/s/ Javier Astaburuaga | |
| Javier Astaburuaga | |||
| Chief Financial Officer | |||
Date: April 30,
2009
 |
Latin
America’s Beverage Leader
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 |
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FEMSA
Delivers Double-Digit Revenues and
Operating
Income Growth in 1Q09
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Monterrey, Mexico, April 30,
2009 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”)
announced today its operational and financial results for the first
quarter of 2009.
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First
Quarter 2009 Highlights:
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·
|
Consolidated
total revenues and income from operations grew 20.1%, however, net
income
declined 27.9%.
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|
-
|
In
spite of the challenging economic environment and continuous pressure from
the devaluation
of the local currencies in our main markets against the US dollar,
FEMSA
delivered another quarter of strong growth in revenues and income from
operations,
driven by double-digit performance across our business units.
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|
-
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Net
income decrease of 27.9% was driven by higher integral result of financing
in the quarter,
while net majority income declined 39.4%.
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·
|
Coca-Cola
FEMSA total revenues and income from operations increased 30.5% and
17.3%,
respectively.
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-
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Driven
by double-digit growth in income from operations in Mercosur and
Latincentro
and stable growth in Mexico.
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·
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FEMSA
Cerveza total revenues increased 10.4% and income from operations
increased 13.8%.
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-
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Sales
volume in Mexico decreased 3.0%, compared to the solid 7.1% volume
growth
in 1Q08. Brazil sales volume increased 1.9% in spite of price increases
implemented
over the past three quarters, and export sales volume grew 2.2%,
despite
the decline in the overall US import category.
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-
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Strong
top-line growth, combined with tight operating expense containment and the
deferral
of some marketing expenses, offset raw material pressures resulting in a
13.8%
increase in income from operations.
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·
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FEMSA
Comercio continued its pace of strong growth and margin
expansion.
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-
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Income
from operations increased over 25% for the ninth consecutive quarter,
resulting
in an operating margin expansion of 60 basis points to reach
4.1%.
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José
Antonio Fernández, Chairman and CEO of FEMSA, commented: “Our first
quarter results
reflect the strength of our strategy and our integrated beverage platform
as well as our
team’s ability to adjust our business levers to navigate these turbulent
waters. We are
encouraged by the resilience of our operations across businesses and
across territories. However
the pressures of the environment, specifically raw material costs and
exchange rate,
continue to impact our results. Going forward, we are cautious as we see
signs that the deceleration
of economic activity will continue for some time, while levels of
macroeconomic uncertainty
remain high. And yet, we are confident that we will continue to deliver
solid results
and will emerge from the current downturn a leaner and stronger
company.”
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FEMSA
Consolidated
As
a useful reference, we note that local currencies in our major operations
depreciated against the US dollar particularly starting in the fourth quarter of
2008 and continued depreciating during 1Q09. In this period, the Mexican Peso
depreciated approximately 34% and the Brazilian Real approximately 32%, year
over year.
Total revenues increased 20.1%
compared to 1Q08, to Ps. 43.445 billion. Coca-Cola FEMSA accounted for
approximately 73% of the incremental consolidated revenue, while FEMSA Comercio
and FEMSA Cerveza provided the balance.
Gross profit increased 18.6%
compared to 1Q08 to Ps. 19.301 billion in 1Q09. Gross margin decreased 60 basis
points compared to the same period in 2008 to 44.4% of total revenues. FEMSA
Comercio’s gross profit improvement partially offset raw-material cost pressures
at Coca-Cola FEMSA and FEMSA Cerveza, as well as the depreciation of the local
currencies as applied to our US dollar denominated costs.
Income from operations
increased 20.1% to Ps. 4.781 billion in 1Q09 as compared to the same period in
2008, driven by double-digit growth in all of our business units. Consolidated
operating margin was flat as compared to 1Q08 at 11.0%, as FEMSA Comercio and
FEMSA Cerveza operating margin improvement and expense containment initiatives
offset margin pressure at Coca-Cola FEMSA.
Net income decreased
27.9% compared to 1Q08 to Ps. 1.470 billion in 1Q09, primarily as a result of a
higher integral result of financing during the quarter. This increase resulted
from the appreciation of the US dollar against our local currencies as applied
to our liability position, and higher interest expenses. The effective tax rate
was 37.4% in 1Q09 compared with 31.8% in 1Q08, due to lower income before
taxes.
Net majority income decreased
39.4% over 1Q08, resulting in Ps. 0.22 per FEMSA Unit1 in 1Q09. Net majority income per FEMSA ADS was
US$ 0.15 for the quarter.
Capital expenditures increased
13.3% over 1Q08 to Ps. 2.233 billion in 1Q09, mainly driven by manufacturing
investments at Coca-Cola FEMSA, and the accelerated expansion in store openings
at FEMSA Comercio.
Our consolidated balance sheet as
of March 31, 2009, recorded a cash balance of Ps. 12.507 billion (US$ 880.2
million), an increase of Ps. 1.018 billion (US$ 71.6 million) compared to the
same period of 2008. Short-term debt was Ps. 15.494 billion (US$ 1.090 billion)
while long-term debt was Ps. 31.606 billion (US$ 2.224 billion). Our net debt
increased by Ps. 5.545 billion (US$390.2 million) mainly reflecting the
appreciation of the US dollar as applied to our US dollar liability position,
new bank loans and the issuance of Ps. 2.0 billion in Certificados Bursátiles by
Coca-Cola FEMSA in January 2009.
Consistent
with FEMSA’s conservative approach, as of March 31, 2009, our ratio of net debt
to EBITDA2 was only 1.1x, while our mix of US
dollar-denominated debt represented 19.9% (9% when measured as percentage of our
net debt) and our mix of fixed interest rate represented 50.3%. In terms of our
debt profile, we had approximately Ps. 13.4 billion (US$ 945 million) coming due
in 2009, which have been totally refinanced as of April 29, 2009. For 2010 and
2011, we have minor debt maturities, and our debt profile currently extends as
far out as 2017.
As a
matter of policy, FEMSA follows a conservative approach with respect to its
leverage position and seeks to maintain low leverage ratios. FEMSA also seeks to
manage risk, through derivative instruments, through which it aims to minimize
the volatility and uncertainty of operating results by hedging interest rates,
foreign exchange rates and the prices of certain of our raw materials, according
to our policy.
|
1
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FEMSA
Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is
comprised of one Series B Share, two Series D-B Shares and two Series D-L
Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number
of FEMSA Units outstanding as of March 31, 2008 was 3,578,226,270
equivalent to the total number of FEMSA Shares outstanding as of the same
date, divided by 5.
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2
|
As
used herein, Net debt/EBITDA is calculated by dividing net debt at the end
of the quarter by the EBITDA for the last twelve months, as reported in
Mexican pesos and converted to US dollars with the period-end exchange
rate.
|
Soft
Drinks – Coca-Cola FEMSA
Coca-Cola
FEMSA’s financial results and discussion are incorporated by reference from
Coca-Cola FEMSA’s press release, which is attached to this press release or
visit www.coca-colafemsa.com.
Beer
– FEMSA Cerveza
Mexico sales volume decreased 3.0% to 5.878
million hectoliters in 1Q09 compared to solid 7.1% volume growth in 1Q08. This
decrease partially reflects unfavorable calendar effects resulting from one
calendar day less in February and the Easter period shifting to 2Q09, as well as
price increases implemented during the last twelve months. Our Tecate brand family combined
with Dos Equis had
another quarter of particularly solid performance.
Brazil sales volume increased
1.9% in 1Q09, to 2.451 million hectoliters, in spite of price increases
implemented since September 2008.
Export sales volume increased
2.2% in 1Q09, compared to solid 12.6% growth in 1Q08, to 786 thousand
hectoliters in 1Q09, despite a challenging economic environment in the US. This
increase was mainly driven by our Dos Equis brand in the US as
well as by Sol in other
key markets.
Total revenues increased 10.4%
over 1Q08 to Ps. 10.054 billion in 1Q09. Higher average price per hectoliter in
all of our operations, combined with volume growth in Exports and Brazil drove
these results. Mexican beer sales represented 69.8% of total beer revenues,
while Brazil and Export beer sales reached 18.2% and 12.0% of total beer
revenues, respectively.
Mexico
price per hectoliter showed robust growth of 6.2% over 1Q08 to Ps. 1,084.9 in
1Q09, resulting from price increases implemented during 2008 and to a lesser
extent, from volumes brought under our own distribution network. Brazil price
per hectoliter, calculated in Mexican pesos increased 18.4% to Ps. 678.0
compared to the same period in 2008. Price per hectoliter in local currency was
18.3% higher as a result of price increases implemented over the last three
quarters ahead of the industry, as well as incremental volumes coming from our
super premium portfolio led by the Heineken brand. Export price
per hectoliter in Mexican pesos increased 40.6% to Ps. 1,396.8 in 1Q09 as
compared with 1Q08, reflecting the Mexican peso depreciation against the US
dollar. In US dollar terms, price per hectoliter increased 4.9% mainly due to
price increases implemented over the last twelve months mainly in our Tecate brand.
Cost of sales was Ps. 5.108
billion in 1Q09, an increase of 19.1% compared with 1Q08, ahead of the 10.4%
growth in total revenues. Cost per hectoliter increased by 20.7% as a result of
continuous cost pressure coming from the effect of the Brazilian Real
depreciation of approximately 32%, as applied to our dollar-denominated costs
and raw materials increases across all regions, particularly in grains. Gross
profit increased 2.6% over 1Q08 to Ps. 4.946 billion in 1Q09, however as a
percentage of sales, gross margin declined 370 basis points from 52.9% in 1Q08
to 49.2% in 1Q09.
Income from operations
increased 13.8% compared with 1Q08 to Ps. 766 million in 1Q09, resulting in a
reduction of 390 basis points of selling and administrative expenses as a
percentage of sales, and a 20 basis point improvement in operating margin in the
quarter. Robust top-line growth together with a decline in administrative
expenses, and a slight increase in selling expenses compared to 1Q08, more than
offset the cost pressure experienced during the quarter. Expense containment
initiatives implemented across territories and lower marketing investment in
Brazil and Mexico, offset the effect of the peso depreciation as applied to our
export marketing expenses, as well as incremental expenses driven by volumes
brought under our own distribution network in Mexico.
April 30,
2009
3
FEMSA
Comercio
Total revenues increased 10.4%
compared to 1Q08 to Ps. 11.801 billion in 1Q09 driven by the opening of 168 net
new stores in the quarter, for a total increase of 906 net new stores in the
last twelve months. As of March 31, 2009, there were a total of 6,542 OXXO
convenience stores in Mexico. Same-store sales decreased 1.8% for the quarter
over 1Q08, due to a 4.1% decline in the average customer ticket, which more than
offset the 2.3% increase in store traffic. This decrease reflects, in part,
unfavorable calendar effects compared to the prior year as well as the effects
seen in 2008 on same-store sales, ticket and traffic dynamics, which reflect the
mix shift from prepaid wireless phone cards to the sale of electronic air-time,
for which only the margin is recorded, not the full amount of the air-time
recharge. On a comparable basis excluding this change, the average ticket would
have grown in the mid-single-digits in 1Q09.
Gross profit increased by
20.6% in 1Q09 compared to 1Q08, resulting in a 250 basis point gross margin
expansion reaching 30.1%. As was the case in several previous quarters, this
increase largely reflects the shift towards electronic air-time recharges as
described above and to a lesser extent, better pricing strategies and improved
commercial terms with our supplier partners.
Income from operations increased 29.6% over
1Q08 to Ps. 481 million in 1Q09. Operating expenses increased 19.3% to Ps. 3,074
million, mainly resulting from the increased number of stores. Operating margin
expanded 60 basis points over 1Q08 reaching 4.1%, as the strong expansion of the
gross margin more than offset higher operating expenses.
Recent
Developments
FEMSA
Shareholder Meeting
On March
25, 2009, FEMSA held its Annual Ordinary General Shareholders Meeting, during
which shareholders approved the payment of a cash dividend in the amount of Ps.
1,620 million, consisting of Ps. 0.100985875 per each Series “D” share and Ps.
0.0807887 per each Series “B” share, which amounts to Ps. 0.4847322 per “BD”
Unit (BMV: FEMSAUBD) or Ps. 4.847322 per ADS (NYSE: FMX), and Ps. 0.4039435 per
“B” Unit (BMV: FEMSAUB). The dividend payment will be split in two equal
payments, payable on May 4, 2009 and November 3, 2009 with record dates of April
30, 2009 and October 30, 2009, respectively.
April 30, 2009
4
CONFERENCE
CALL INFORMATION:
Our First
Quarter 2009 Conference Call will be held on: Thursday April 30, 2009, 11:00 AM
Eastern Time (10:00 AM Mexico City Time). To participate in the conference call,
please dial: Domestic US: (1-888) 378-0327, International: (1-719) 325-2212. The
conference call will be webcast live through streaming audio. For details please
visit www.femsa.com/investor.
If you
are unable to participate live, the conference call audio will be available on
http://ir.femsa.com/results.cfm.
We are a
holding company whose principal activities are grouped under the following
sub-holding companies and carried out by their respective operating
subsidiaries: Coca-Cola FEMSA, S.A.B. de C.V., which engages in the production,
distribution and marketing of non-alcoholic beverages; FEMSA Cerveza, S.A. de
C.V., which engages in the production, distribution and marketing of beer and
flavored alcoholic beverages; and FEMSA Comercio, S.A. de C.V., which engages in
the operation of convenience stores.
The
translations of Mexican pesos into US dollars are included solely for the
convenience of the reader, using the noon day buying rate for pesos as published
by the Federal Reserve Bank of New York at March 31, 2009, which was 14.21
Mexican pesos per US dollar.
FORWARD
LOOKING STATEMENTS
This
report may contain certain forward-looking statements concerning our future
performance that should be considered as good faith estimates made by us. These
forward-looking statements reflect management’s expectations and are based upon
currently available data. Actual results are subject to future events and
uncertainties, which could materially impact our actual
performance.
Six pages
of tables and Coca-Cola FEMSA’s press release to follow
April 30, 2009
5
Consolidated
Income Statement
Millions
of Pesos
For
the first quarter of:
| 2009(A) |
% of rev.
|
2008(A) |
% of rev.
|
% Increase
|
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|
Total
revenues
|
43,445 | 100.0 | 36,181 | 100.0 | 20.1 | |||||||||||||||
|
Cost
of sales
|
24,144 | 55.6 | 19,904 | 55.0 | 21.3 | |||||||||||||||
|
Gross
profit
|
19,301 | 44.4 | 16,277 | 45.0 | 18.6 | |||||||||||||||
|
Administrative
expenses
|
2,378 | 5.5 | 2,197 | 6.1 | 8.2 | |||||||||||||||
|
Selling
expenses
|
12,142 | 27.9 | 10,100 | 27.9 | 20.2 | |||||||||||||||
|
Operating
expenses
|
14,520 | 33.4 | 12,297 | 34.0 | 18.1 | |||||||||||||||
|
Income
from operations
|
4,781 | 11.0 | 3,980 | 11.0 | 20.1 | |||||||||||||||
|
Other
expenses
|
(518 | ) | (319 | ) | 62.5 | |||||||||||||||
|
Interest
expense
|
(1,486 | ) | (1,171 | ) | 26.9 | |||||||||||||||
|
Interest
income
|
115 | 157 | (26.4 | ) | ||||||||||||||||
|
Interest
expense, net
|
(1,371 | ) | (1,014 | ) | 35.2 | |||||||||||||||
|
Foreign
exchange (loss) gain
|
(430 | ) | 111 |
N.S.
|
||||||||||||||||
|
(Loss)
gain on monetary position
|
85 | 109 | (21.6 | ) | ||||||||||||||||
|
Gain
(loss) on financial instrument(6)
|
(198 | ) | 123 |
N.S.
|
||||||||||||||||
|
Integral
result of financing
|
(1,914 | ) | (671 | ) |
N.S.
|
|||||||||||||||
|
Income
before income tax
|
2,349 | 2,990 | (21.4 | ) | ||||||||||||||||
|
Income
tax
|
(879 | ) | (952 | ) | (7.6 | ) | ||||||||||||||
|
Net
income
|
1,470 | 2,038 | (27.9 | ) | ||||||||||||||||
|
Net
majority income
|
783 | 1,292 | (39.4 | ) | ||||||||||||||||
|
Net
minority income
|
687 | 746 | (7.9 | ) | ||||||||||||||||
|
(A)
Average Mexican Pesos of each year.
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EBITDA & CAPEX
|
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Income
from operations
|
4,781 | 11.0 | 3,980 | 11.0 | 20.1 | |||||||||||||||
|
Depreciation
|
1,381 | 3.2 | 1,166 | 3.2 | 18.4 | |||||||||||||||
|
Amortization
& other(5)
|
1,165 | 2.7 | 990 | 2.8 | 17.7 | |||||||||||||||
|
EBITDA
|
7,327 | 16.9 | 6,136 | 17.0 | 19.4 | |||||||||||||||
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CAPEX
|
2,233 | 1,970 | 13.3 | |||||||||||||||||
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FINANCIAL RATIOS
|
2009
|
2008
|
Var. p.p.
|
|||||||||||||||||
|
Liquidity(1)
|
0.87 | 1.07 | (0.20 | ) | ||||||||||||||||
|
Interest
coverage(2)
|
5.35 | 6.05 | (0.71 | ) | ||||||||||||||||
|
Leverage(3)
|
0.96 | 0.81 | 0.15 | |||||||||||||||||
|
Capitalization(4)
|
36.69 | % | 33.01 | % | 3.68 | |||||||||||||||
(1) Total
current assets / total current liabilities.
(2) Income
from operations + depreciation + amortization & other / interest expense,
net.
(3) Total
liabilities / total stockholders' equity.
(4) Total
debt / long-term debt + stockholders' equity.
Total debt = short-term bank loans + current maturities long-term debt + long-term bank loans and notes payable.
Total debt = short-term bank loans + current maturities long-term debt + long-term bank loans and notes payable.
(5)
Includes returnable bottle breakage expense.
(6)
Includes solely derivative instruments that do not meet hedging criteria for
accounting purposes
April 30, 2009
6
FEMSA
Consolidated
Balance Sheet
As
of March 31:
|
|
2009(A) | 2008(A) |
% Increase
|
|||||||||
| ASSETS | ||||||||||||
|
Cash
and cash equivalents
|
12,507 | 11,489 | 8.9 | |||||||||
|
Accounts
receivable
|
9,124 | 8,325 | 9.6 | |||||||||
|
Inventories
|
12,782 | 10,303 | 24.1 | |||||||||
|
Prepaid
expenses and other
|
7,026 | 5,208 | 34.9 | |||||||||
|
Total
current assets
|
41,439 | 35,325 | 17.3 | |||||||||
|
Property,
plant and equipment, net
|
62,577 | 55,059 | 13.7 | |||||||||
|
Intangible
assets(1)
|
66,393 | 60,307 | 10.1 | |||||||||
|
Other
assets
|
19,463 | 16,650 | 16.9 | |||||||||
|
TOTAL
ASSETS
|
189,872 | 167,341 | 13.5 | |||||||||
|
LIABILITIES & STOCKHOLDERS´
EQUITY
|
||||||||||||
|
Bank
loans
|
7,640 | 4,167 | 83.3 | |||||||||
|
Current
maturities long-term debt
|
7,854 | 5,878 | 33.6 | |||||||||
|
Interest
payable
|
304 | 482 | (36.9 | ) | ||||||||
|
Operating
liabilities
|
31,600 | 22,445 | 40.8 | |||||||||
|
Total
current liabilities
|
47,398 | 32,972 | 43.8 | |||||||||
|
Long-term
debt (2)
|
31,606 | 30,492 | 3.7 | |||||||||
|
Labor
liabilities
|
3,003 | 2,321 | 29.4 | |||||||||
|
Other
liabilities
|
11,090 | 9,250 | 19.9 | |||||||||
|
Total
liabilities
|
93,097 | 75,035 | 24.1 | |||||||||
|
Total
stockholders’ equity
|
96,775 | 92,306 | 4.8 | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
189,872 | 167,341 | 13.5 | |||||||||
(1)
Includes mainly the intangible assets generated by acquisitions.
(A)
Mexican Pesos for the end of each year.
(2)
Includes the effect of assigned and non assigned derivative financial
instruments on long-term debt, for accountig purposes
|
March 31, 2009
|
|||||||||||||||||
|
DEBT
MIX
|
Ps.
|
% Integration
|
Average Rate
|
||||||||||||||
|
Denominated
in:
|
|||||||||||||||||
|
Mexican
pesos
|
34,866 | 74.0 | % | 9.2 | % | ||||||||||||
|
Dollars
|
9,367 | 19.9 | % | 4.4 | % | ||||||||||||
|
Colombian
pesos
|
1,754 | 3.7 | % | 13.9 | % | ||||||||||||
|
Argentinan
pesos
|
930 | 2.0 | % | 16.5 | % | ||||||||||||
|
Venezuelan
bolivars
|
182 | 0.4 | % | 19.0 | % | ||||||||||||
|
Brazilian
Reals
|
1 | 0.0 | % | 10.7 | % | ||||||||||||
|
Total
debt
|
47,100 | 100.0 | % | 8.8 | % | ||||||||||||
|
Fixed
rate(1)
|
23,686 | 50.3 | % | ||||||||||||||
|
Variable
rate(1)
|
23,414 | 49.7 | % | ||||||||||||||
|
% of Total Debt
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015 | + | ||||||||||||||||||||
|
DEBT
MATURITY PROFILE
|
28.5 | % | 12.8 | % | 9.5 | % | 18.0 | % | 16.9 | % | 3.0 | % | 11.3 | % | ||||||||||||||
(1)
Includes the effect of interest rate swaps.
April 30, 2009
7
Coca-Cola
FEMSA
Results
of Operations
Millions
of Pesos
For
the first quarter of:
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
||||||||||||||||
|
Total
revenues
|
22,526 | 100.0 | 17,257 | 100.0 | 30.5 | |||||||||||||||
|
Cost
of sales
|
12,083 | 53.6 | 8,986 | 52.1 | 34.5 | |||||||||||||||
|
Gross
profit
|
10,443 | 46.4 | 8,271 | 47.9 | 26.3 | |||||||||||||||
|
Administrative
expenses
|
1,057 | 4.7 | 913 | 5.3 | 15.8 | |||||||||||||||
|
Selling
expenses
|
6,081 | 27.0 | 4,540 | 26.3 | 33.9 | |||||||||||||||
|
Operating
expenses
|
7,138 | 31.7 | 5,453 | 31.6 | 30.9 | |||||||||||||||
|
Income
from operations
|
3,305 | 14.7 | 2,818 | 16.3 | 17.3 | |||||||||||||||
|
Depreciation
|
708 | 3.1 | 561 | 3.3 | 26.2 | |||||||||||||||
|
Amortization
& other
|
261 | 1.2 | 190 | 1.1 | 37.4 | |||||||||||||||
|
EBITDA
|
4,274 | 19.0 | 3,569 | 20.7 | 19.8 | |||||||||||||||
|
Capital
expenditures
|
710 | 521 | 36.2 | |||||||||||||||||
|
(A)
Average Mexican Pesos of each year.
|
||||||||||||||||||||
|
Sales
volumes
|
||||||||||||||||||||
|
(Millions of unit cases)
|
||||||||||||||||||||
|
Mexico
|
272.4 | 49.1 | 264.0 | 51.0 | 3.2 | |||||||||||||||
|
Latincentro
|
132.7 | 23.9 | 130.2 | 25.1 | 1.9 | |||||||||||||||
|
Mercosur
|
149.1 | 26.9 | 123.5 | 23.9 | 20.7 | |||||||||||||||
|
Total
|
554.2 | 100.0 | 517.7 | 100.0 | 7.1 | |||||||||||||||
April 30, 2009
8
FEMSA
Cerveza
Results
of Operations
Millions
of Pesos
For
the first quarter of:
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
||||||||||||||||
|
Sales:
|
||||||||||||||||||||
|
Mexico
|
6,377 | 63.4 | 6,192 | 68.0 | 3.0 | |||||||||||||||
|
Brazil
|
1,662 | 16.5 | 1,378 | 15.1 | 20.6 | |||||||||||||||
|
Export
|
1,098 | 11.0 | 764 | 8.4 | 43.7 | |||||||||||||||
|
Beer
sales
|
9,137 | 90.9 | 8,334 | 91.5 | 9.6 | |||||||||||||||
|
Other
revenues
|
917 | 9.1 | 777 | 8.5 | 18.0 | |||||||||||||||
|
Total
revenues
|
10,054 | 100.0 | 9,111 | 100.0 | 10.4 | |||||||||||||||
|
Cost
of sales
|
5,108 | 50.8 | 4,288 | 47.1 | 19.1 | |||||||||||||||
|
Gross
profit
|
4,946 | 49.2 | 4,823 | 52.9 | 2.6 | |||||||||||||||
|
Administrative
expenses
|
969 | 9.6 | 998 | 11.0 | (2.9 | ) | ||||||||||||||
|
Selling
expenses
|
3,211 | 32.0 | 3,152 | 34.5 | 1.9 | |||||||||||||||
|
Operating
expenses
|
4,180 | 41.6 | 4,150 | 45.5 | 0.7 | |||||||||||||||
|
Income
from operations
|
766 | 7.6 | 673 | 7.4 | 13.8 | |||||||||||||||
|
Depreciation
|
455 | 4.5 | 417 | 4.6 | 9.1 | |||||||||||||||
|
Amortization
& other
|
748 | 7.5 | 658 | 7.2 | 13.7 | |||||||||||||||
|
EBITDA
|
1,969 | 19.6 | 1,748 | 19.2 | 12.6 | |||||||||||||||
|
Capital
expenditures
|
1,037 | 1,059 | (2.1 | ) | ||||||||||||||||
|
(A)
Average Mexican Pesos of each year.
|
||||||||||||||||||||
|
Sales
volumes
|
||||||||||||||||||||
|
(Thousand hectoliters)
|
||||||||||||||||||||
|
Mexico
|
5,877.7 | 64.5 | 6,062.1 | 65.6 | (3.0 | ) | ||||||||||||||
|
Brazil
|
2,451.4 | 26.9 | 2,405.7 | 26.1 | 1.9 | |||||||||||||||
|
Exports
|
786.1 | 8.6 | 768.8 | 8.3 | 2.2 | |||||||||||||||
|
Total
|
9,115.2 | 100.0 | 9,236.6 | 100.0 | (1.3 | ) | ||||||||||||||
|
Price per hectoliter
|
||||||||||||||||||||
|
Mexico
|
1,084.9 | 1,021.4 | 6.2 | |||||||||||||||||
|
Brazil
|
678.0 | 572.8 | 18.4 | |||||||||||||||||
|
Exports
|
1,396.8 | 993.7 | 40.6 | |||||||||||||||||
|
Total
|
1,002.4 | 902.3 | 11.1 | |||||||||||||||||
|
Price per hectoliter in local
currency
|
||||||||||||||||||||
|
Brazil
(Brazilian
Real)
|
109.1 | 92.3 | 18.3 | |||||||||||||||||
|
Exports
(USD)
|
96.6 | 92.1 | 4.9 | |||||||||||||||||
April 30, 2009
9
Results
of Operations
Millions
of Pesos
For
the first quarter of:
|
2009(A)
|
% of rev.
|
2008(A)
|
% of rev.
|
% Increase
|
||||||||||||||||
|
Total
revenues
|
11,801 | 100.0 | 10,687 | 100.0 | 10.4 | |||||||||||||||
|
Cost
of sales
|
8,246 | 69.9 | 7,740 | 72.4 | 6.5 | |||||||||||||||
|
Gross
profit
|
3,555 | 30.1 | 2,947 | 27.6 | 20.6 | |||||||||||||||
|
Administrative
expenses
|
225 | 1.9 | 203 | 1.9 | 10.8 | |||||||||||||||
|
Selling
expenses
|
2,849 | 24.1 | 2,373 | 22.2 | 20.1 | |||||||||||||||
|
Operating
expenses
|
3,074 | 26.0 | 2,576 | 24.1 | 19.3 | |||||||||||||||
|
Income
from operations
|
481 | 4.1 | 371 | 3.5 | 29.6 | |||||||||||||||
|
Depreciation
|
196 | 1.7 | 158 | 1.5 | 24.1 | |||||||||||||||
|
Amortization
& other
|
126 | 1.0 | 111 | 1.0 | 13.5 | |||||||||||||||
|
EBITDA
|
803 | 6.8 | 640 | 6.0 | 25.5 | |||||||||||||||
|
Capital
expenditures
|
497 | 368 | 35.1 | |||||||||||||||||
|
(A)
Average Mexican Pesos of each year.
|
||||||||||||||||||||
|
Information
of Convenience Stores
|
||||||||||||||||||||
|
Total
stores
|
6,542 | 5,636 | 16.1 | |||||||||||||||||
|
Net
new convenience stores
|
||||||||||||||||||||
|
vs.
March prior year
|
906 | 698 | 29.8 | |||||||||||||||||
|
vs.
December prior year
|
168 | 73 | 130.1 | |||||||||||||||||
|
Same
store data: (1)
|
||||||||||||||||||||
|
Sales
(thousands of pesos)
|
582.8 | 593.2 | (1.8 | ) | ||||||||||||||||
|
Traffic
|
22.6 | 22.1 | 2.3 | |||||||||||||||||
|
Ticket
|
25.8 | 26.9 | (4.1 | ) | ||||||||||||||||
(1) Monthly average information per store,
considering same stores with at least 13 months of
operations.
April 30, 2009
10
Macroeconomic
Information
|
Exchange
Rate
|
||||||||||||||||||||||||||||
|
Inflation
|
as of March 31, 2009
|
as of March 31, 2008
|
||||||||||||||||||||||||||
|
March
08 -
|
December
08 -
|
|||||||||||||||||||||||||||
|
1Q 2009
|
March 09
|
March 09
|
Per USD
|
Per Mx. Peso
|
Per USD
|
Per Mx. Peso
|
||||||||||||||||||||||
|
Mexico
|
1.03 | % | 6.05 | % | 1.03 | % | 14.33 | 1.0000 | 10.70 | 1.0000 | ||||||||||||||||||
|
Colombia
|
1.94 | % | 6.15 | % | 1.94 | % | 2,561.21 | 0.0056 | 1,821.60 | 0.0059 | ||||||||||||||||||
|
Venezuela
|
4.87 | % | 28.18 | % | 4.87 | % | 2.15 | 6.6659 | 2.15 | 4.9750 | ||||||||||||||||||
|
Brazil
|
1.15 | % | 5.92 | % | 1.15 | % | 2.32 | 6.1903 | 1.75 | 6.1153 | ||||||||||||||||||
|
Argentina
|
1.61 | % | 6.25 | % | 1.61 | % | 3.72 | 3.8526 | 3.17 | 3.3763 | ||||||||||||||||||
April 30, 2009
11
|
Stock
Listing Information
Mexican
Stock Exchange
Ticker:
KOFL
NYSE
(ADR)
Ticker:
KOF
Ratio
of KOF L to KOF = 10:1
  |
 |
||||||
|
2009
FIRST-QUARTER RESULTS
|
|||||||
|
First
Quarter
|
|||||||
|
2009
|
2008
|
Δ%
|
|||||
|
Total
Revenues
|
22,526
|
17,257
|
30.5%
|
||||
|
Gross
Profit
|
10,443
|
8,271
|
26.3%
|
||||
|
Operating
Income
|
3,305
|
2,818
|
17.3%
|
||||
|
Majority
Net Income
|
1,327
|
1,621
|
-18.1%
|
||||
|
EBITDA(1)
|
4,274
|
3,569
|
19.8%
|
||||
|
Net
Debt (2)
|
11,231
|
12,382
|
-9.3%
|
||||
|
(3)
EBITDA/ Interest Expense, net
|
9.06
|
9.62
|
|||||
|
(3)
EBITDA/ Interest Expense
|
7.63
|
6.91
|
|||||
|
(3)
Earnings per Share
|
2.87
|
3.95
|
|||||
|
Capitalization(4)
|
29.5
|
%
|
26.5
|
%
|
|||
|
Expressed
in million of Mexican pesos.
(1)
EBITDA = Operating income + Depreciation + Amortization & Other
operative Non-cash Charges.
See
reconciliation table on page 10 except for Earnings per Share
(2)
Net Debt = Total Debt - Cash
(3)
LTM figures
(4)
Total debt / (long-term debt + stockholders' equity)
|
||
|
For
Further Information:
Investor
Relations
Alfredo
Fernández
alfredo.fernandez@kof.com.mx
(5255)
5081-5120 / 5121
Gonzalo
García
gonzalojose.garciaa@kof.com.mx
(5255)
5081-5148
Roland
Karig
roland.karig@kof.com.mx
(5255)
5081-5186
Website:
www.coca-colafemsa.com
|
 Total revenues reached Ps. 22,526 million in the
first quarter of 2009, an increase of 30.5% compared to the first quarter
of 2008; the acquisition of Refrigerantes Minas Gerais (“REMIL”)
contributed more than 25% of this growth.Consolidated operating income grew 17.3% to Ps.
3,305 million for the first quarter of 2009, mainly driven by double-digit
operating income growth recorded in our Mercosur and Latincentro
divisions. Our operating margin reached 14.7% for the first quarter of
2009.Consolidated majority net income decreased 18.1%
to Ps. 1,327 million in the first quarter of 2009, mainly reflecting the
devaluation of the Mexican peso as applied to our U.S. dollar-denominated
net debt, resulting in earnings per share of Ps. 0.72 in the first quarter
of 2009.Mexico
City (April 29, 2009), Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE:
KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler
in Latin America and the second-largest Coca-Cola bottler in the world in
terms of sales volume, announces results for the first quarter of
2009.
"Our
Company achieved healthy top- and bottom-line results for the quarter,
growing volumes, revenues and EBITDA by 7, 30 and 20 percent respectively.
Among other factors, we benefited from the consolidation of our REMIL
franchise territory in Brazil, the continued successful rollout of the
Jugos del Valle line of juice-based beverages in Mexico, Colombia and
Central America, and organic growth. We have the flexibility to adapt our
business through initiatives that sustain our cash flow and meet our
strategic objectives. Importantly, our company is in a very strong
financial position as exemplified by the dividends of more than 1.3
billion Mexican pesos that we paid our shareholders in the month of
April." said Carlos Salazar Lomelin, Chief Executive Officer of the
Company.
|
|
April
29, 2009
|
 |
Page
12
|
CONSOLIDATED
RESULTS
Our
consolidated total revenues increased 30.5% to Ps. 22,526 million in the first
quarter of 2009, compared to the first quarter of 2008, as a result of increases
in all of our divisions. Revenue growth was driven by (i) organic growth, mainly
due to pricing, accounting for approximately 40% of incremental revenues, (ii)
the consolidation of Refrigerantes Minas Gerais, Ltda. (“REMIL”) in Brazil,
contributing more than 25% of incremental revenues for the quarter and (iii) a
positive exchange rate translation effect providing the balance. Excluding the
positive translation effect and the acquisition of REMIL, our consolidated total
revenues would have increased approximately 12%.
Total
sales volume increased 7.1% to 554.2 million unit cases in the first quarter of
2009 as compared to the same period of 2008; excluding REMIL, total sales volume
increased 1.7% mainly driven by incremental volumes from our bottled water
business and still beverages. Still beverages sales volume grew close to 120%,
mainly driven by volumes from the Jugos del Valle brand in our
Mexico and Latincentro divisions, accounting for the majority of incremental
volumes in this category. Bottled water, including bulk water, grew more
than 8%, mainly driven by the consolidation of the Agua de Los Angeles business
in Mexico.
Our gross
profit increased 26.3% to Ps. 10,443 million in the first quarter of 2009,
compared to the first quarter of 2008. Cost of goods sold increased 34.5% mainly
driven by (i) higher year-over-year sweetener costs, (ii) the devaluation of the
local currencies in our main operations as applied to our U.S.
dollar-denominated raw material cost and (iii) the integration of
REMIL; which were partially offset by lower cost of resin. Gross margin
reached 46.4% in the first quarter of 2009 as compared to 47.9% in the same
period of 2008.
Our
consolidated operating income increased 17.3% to Ps. 3,305 million in the first
quarter of 2009, mainly driven by double-digit operating income growth in our
Latincentro and Mercosur divisions. Our operating margin was 14.7% in the first
quarter of 2009, a decrease of 160 basis points. Revenue growth compensated
higher operating expenses and cost of goods sold.
During
the first quarter of 2009, we recorded Ps. 330 million in the other expenses
line. These expenses were mainly driven by the loss on sale of some fixed assets
and employee profit sharing recorded in the other expenses line, in accordance
with the Mexican Financial Reporting Standards.
Our
integral result of financing in the first quarter of 2009 recorded an expense of
Ps. 938 million as compared to Ps. 222 million in the same period of 2008,
mainly due to a higher foreign exchange expense driven by the devaluation of the
Mexican peso as applied to our U.S. dollar-denominated net debt.
During
the first quarter of 2009, income tax, as a percentage of income before taxes,
was 30.7%.
Our
consolidated majority net income decreased by 18.1% to Ps. 1,327 million in the
first quarter of 2009 as compared to the first quarter of 2008, mainly
reflecting the devaluation of the Mexican peso as applied to our U.S.
dollar-denominated net debt. Earnings per share (EPS) were Ps. 0.72
(Ps. 7.19 per ADR) computed on the basis of 1,846.5 million shares
outstanding (each ADR represents 10 local shares).
|
April
29, 2009
|
|
Page
13
|
BALANCE
SHEET
As of
March 31, 2009, Coca-Cola FEMSA had a cash balance of Ps. 9,760 million
including US$ 449 million in US dollar currency, an increase of Ps. 3,568
million compared to December 31, 2008, net of the US$ 46 million paid for our
share of the joint acquisition of the Brisa bottled water business in
Colombia.
Total
short-term debt was Ps. 8,206 million and long-term debt was Ps. 12,785 million.
Total debt increased Ps. 2,417 million compared with year end 2008 mainly due to
the issuance of Ps. 2,000 million in 1.1 year “Certificados Bursátiles” in
January 2009, priced at a yield of 28-day TIIE plus 80 basis points. Net debt
decreased approximately Ps. 1,151 million compared to year end 2008, mainly as a
result of cash generated during the quarter. KOF’s total debt balance includes
U.S. dollar-denominated debt in the amount of US$ 652 million (1).
The
weighted average cost of debt for the quarter was 7.4%. The following charts set
forth the Company’s debt profile by currency and interest rate type and by
maturity date as of March 31, 2009:
|
Currency
|
%
Total Debt(1)
|
%
Interest Rate
Floating(1)(2)
|
||||||
|
Mexican
pesos
|
43.0 | % | 55.9 | % | ||||
|
U.S.
dollars
|
43.4 | % | 39.6 | % | ||||
|
Colombian
pesos
|
8.4 | % | 100.0 | % | ||||
|
Venezuelan
bolivars
|
0.9 | % | 0.0 | % | ||||
|
Argentine
pesos
|
4.4 | % | 55.6 | % | ||||
(1) After
giving effect to cross-currency swaps and interest rate swaps.
(2) Calculated
by weighting each year’s outstanding debt balance mix.
Debt
Maturity Profile
|
Maturity
Date
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014+ | ||||||||||||||||||
|
%
of Total Debt
|
29.5 | % | 19.2 | % | 0.3 | % | 19.1 | % | 11.9 | % | 20.1 | % | ||||||||||||
The US$
449 million in dollar currency included in our cash balance are sufficient to
meet the maturities of approximately US$ 400 million coming due in July of
2009.
Consolidated
Cash Flow
|
Expressed
in million of Mexican pesos (PS.) as of March 31,
2009
|
||||
|
Mar-09
|
||||
|
Ps.
|
||||
|
Income
before taxes
|
2,037 | |||
|
Non
cash charges
|
2,055 | |||
| 4,093 | ||||
|
Change
in working capital
|
16 | |||
|
Resources
Generated by Operating Activities
|
4,109 | |||
|
Investments
|
(1,316 | ) | ||
|
Debt
|
2,165 | |||
|
Other
|
(915 | ) | ||
|
Increase
in cash and cash equivalents
|
4,044 | |||
|
Cash
and cash equivalents at begining of period
|
6,192 | |||
|
Translation
Effect
|
(476 | ) | ||
|
Cash
and cash equivalents at end of period
|
9,760 | |||
The
difference between the debt increase of the balance sheet and the debt increase
in nominal terms presented in the cash flow is related to the foreign exchange
impact, presented separately as translation effect, in accordance with the
Mexican Financial Reporting Standards.
|
April
29, 2009
|
|
Page
14
|
MEXICO
DIVISION OPERATING RESULTS
Revenues
Total
revenues from our Mexico division increased 4.8% to Ps. 8,141 million in the
first quarter of 2009, as compared to the same period of the previous year.
Incremental volumes accounted for close to 70% of incremental revenues during
the quarter. Average price per unit case reached Ps. 29.78, an increase
of 1.6%, as compared to the first quarter of 2008, reflecting higher
average prices per unit case from our growing still beverage portfolio that were
partially offset by lower average prices per unit case in flavored sparkling
beverages. Excluding bulk water under the brands Ciel and Agua de Los Angeles, our
average price per unit case was Ps. 35.13, a 2.6% increase as compared to the
same period of 2008.
Total
sales volume increased 3.2% to 272.4 million unit cases in the first quarter of
2009, as compared to the first quarter of 2008, resulting from incremental
volumes in the still beverage category, increasing almost threefold, driven by
the Jugos del Valle product line and more than 11% volume growth in our bottled
water business which more than compensated for a sales volume decline of 3.6% in
sparkling beverages. This decline was mainly driven by lower flavored sparkling
beverages sales.
Operating
Income
Our gross
profit increased 3.0% to Ps. 4,077 million in the first quarter of 2009 as
compared to the same period of 2008. Cost of goods sold increased 6.6% as a
result of the devaluation of the Mexican peso as applied to our U.S.
dollar-denominated raw material cost and the third and final stage of the
scheduled Coca-Cola Company concentrate price increase announced in 2006, which
was partially offset by lower year-over-year cost of resin. Gross margin
decreased from 51.0% in the first quarter of 2008 to 50.1% in the same period of
2009.
Operating
income increased 0.8% to Ps. 1,334 million in the first quarter of 2009,
compared to Ps. 1,323 million in the same period of 2008, as a result of revenue
growth, that compensated for higher cost of goods sold and higher selling
expenses due to the integration of the specialized sales force of Jugos del
Valle, and the integration of the Agua De Los Angeles and Ciel jug water
businesses in the Valley of Mexico. Our operating margin was 16.4% in the first
quarter of 2009, a decrease of 60 basis points as compared to the same
period of 2008.
|
April
29, 2009
|
|
Page
15
|
LATINCENTRO
DIVISION OPERATING RESULTS (Colombia, Venezuela, Guatemala, Nicaragua, Costa
Rica and Panama)
Revenues
Total
revenues reached Ps. 8,049 million in the first quarter of 2009, an increase of
50.4% as compared to the same period of 2008. Higher average price per unit case
and volume growth accounted for more than 40% of incremental revenues and a
positive currency translation effect represented the balance. Excluding this
positive currency translation effect, our Latincentro division’s revenues would
have increased aproximately 21%.
Total
sales volume in our Latincentro division increased 1.9% to 132.7 million unit
cases in the first quarter of 2009 as compared to the same period of 2008.
Volume growth was mainly driven by increases in sparkling beverages in Venezuela
and still beverages in Colombia, due to the strong performance of the Jugos del
Valle line of business, which compensated for a volume decline in Central
America.
Operating
Income
Gross
profit reached Ps. 3,672 million, an increase of 50.2% in the first quarter of
2009, as compared to the same period of 2008. Cost of goods sold increased 50.6%
mainly driven by higher sweetener costs across the division and the depreciation
of the Colombian peso as applied to our U.S. dollar-denominated packaging costs.
Gross margin decreased 10 basis points to 45.6% in the first quarter of
2009.
Our
operating income increased 32.0% to Ps. 1,044 million in the first quarter of
2009, compared to the first quarter of 2008, as a result of operating leverage
achieved by higher revenues that more than compensated for higher labor costs in
Venezuela. Our operating margin reached 13.0% in the first quarter of 2009,
resulting in a 180 basis points decline as compared to the same period of
2008.
|
April
29, 2009
|
|
Page
16
|
MERCOSUR
DIVISION OPERATING RESULTS (Brazil and Argentina)
As
of June 2008, Coca-Cola FEMSA includes the REMIL operation in its Mercosur
division. Volume and average price per unit case exclude beer
results.
Revenues
Net
revenues increased 53.1% to Ps. 6,230 million in the first quarter of 2009, as
compared to the same period of 2008. Excluding beer, which accounted for Ps. 608
million during the quarter, net revenues increased 50.1% to Ps. 5,622 million,
compared to the same period of 2008. The acquisition of REMIL accounted for more
than 60% of this growth, higher average prices per unit case accounted for
almost 30% of incremental net revenues and a positive translation effect
represented the balance. Excluding this positive currency translation effect,
our Mercosur division’s net revenues would have increased approximately
48%.
Sales
volume, excluding beer, increased 20.7% to 149.1 million unit cases in the first
quarter of 2009, as compared to the first quarter of 2008, driven by the
acquisition of REMIL. Sales volume, excluding REMIL and beer, decreased 1.5% to
reach 121.6 million unit cases as a result of volume declines in
Argentina.
Operating
Income
In the
first quarter of 2009, our gross profit increased 44.2% to Ps. 2,694 million, as
compared to the same period of the previous year. Cost of goods sold increased
60.6% driven by (i) the integration of REMIL in Brazil, (ii) the devaluation of
the local currencies as applied to our U.S. dollar-denominated raw material cost
and (iii) higher sweetener cost in the division, as compared to the same period
of last year. Our Mercosur division gross margin decreased 270 basis points to
42.5% in the first quarter of 2009.
Operating
income increased 31.7%, reaching Ps. 927 million in the first quarter of 2009,
as compared to Ps. 704 million in the same period of 2008. Operating leverage
achieved by higher revenues more than compensated for higher labor and freight
costs in Argentina. Our operating margin was 14.6% in the first quarter of 2009,
a decrease of 240 basis points as compared to the first quarter of
2008.
|
April
29, 2009
|
|
Page
17
|
RECENT
DEVELOPEMENTS
|
|
·
|
On
February 27, 2009 Coca-Cola FEMSA announced that it had successfully
closed the transaction with Bavaria, a subsidiary of SABMiller, to jointly
acquire with The Coca-Cola Company, the Brisa bottled water business
(including the Brisa brand and production assets). This transaction will
enable us to increase our presence in the water business and complement
our portfolio. Brisa sold 47 million unit cases in 2008 in Colombia. The
purchase price of US$92 million was shared equally by Coca-Cola FEMSA and
The Coca-Cola Company. The parties have also agreed a transition
arrangement after closing, during which Bavaria will still be producing,
selling and distributing Brisa.
|
|
|
·
|
On
March 23, 2009 – Coca-Cola FEMSA held its Annual Ordinary
General Shareholders Meeting during which its shareholders approved
the Company’s consolidated financial statements for the year ended
December 31, 2008, the declaration of dividends corresponding to fiscal
year 2008 and the composition of the Board of Directors and
Committees for 2009. Shareholders approved the payment of a cash
dividend in the amount of Ps. 1,343.9 million. The dividend was paid
on April 13, 2009, in the amount of Ps. 0.7278 per each ordinary share,
equivalent to Ps. 7.278 per ADR. In addition, shareholders approved
an amount of Ps. 400 million, the maximum amount allowed under Mexican
law, which is available to the Company for share repurchases in the
future, should it decide to use these
funds.
|
CONFERENCE
CALL INFORMATION
Our
first-quarter 2009 Conference Call will be held on: April 29, 2009, at 11:00
A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the
conference call, please dial: Domestic U.S.: 866-700-7477 or International:
617-213-8840. We invite investors to listen to the live audiocast of the
conference call on the Company’s website, www.coca-colafemsa.com
If you
are unable to participate live, an instant replay of the conference call will be
available through May 6, 2009. To listen to the replay, please dial: Domestic
U.S.: 888-286-8010 or International: 617-801-6888. Pass code:
48063967.
v v
v
Coca-Cola
FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Sprite, Fanta,
Lift and other trademark beverages of The Coca-Cola Company in Mexico (a
substantial part of central Mexico, including Mexico City and southeast Mexico),
Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa
Rica (nationwide), Panama (nationwide), Colombia (most of the country),
Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state
of Mato Grosso do Sul, part of the state of Goias and Minas Gerais) and
Argentina (federal capital of Buenos Aires and surrounding areas), along with
bottled water, beer and other beverages in some of these territories. The
Company has 30 bottling facilities in Latin America and serves over 1,500,000
retailers in the region. The Coca-Cola Company owns a 31.6% equity interest in
Coca-Cola FEMSA.
v v
v
This news
release may contain forward-looking statements concerning Coca-Cola FEMSA’s
future performance and should be considered as good faith estimates by Coca-Cola
FEMSA. These forward-looking statements reflect management’s expectations and
are based upon currently available data. Actual results are subject to future
events and uncertainties, many of which are outside Coca-Cola FEMSA’s control
that could materially impact the Company’s actual performance.
References
herein to “US$” are to United States dollars. This news release contains
translations of certain Mexican peso amounts into U.S. dollars for the
convenience of the reader. These translations should not be construed as
representations that Mexican peso amounts actually represent such U.S. dollar
amounts or could be converted into U.S. dollars at the rate
indicated.
U.S.
dollar amounts in this report, solely for the convenience of the reader, have
been translated from Mexican pesos at the rate for pesos as of March 31, 2009,
referred to in page 13 of this document, which exchange rate was Ps. 14.3317 to
US$ 1.00.
v v
v
(6 pages
of tables to follow)
|
April
29, 2009
|
|
Page
18
|
Consolidated
Income Statement
Expressed
in million of Mexican pesos(1)
| 1Q 09 |
%
Rev
|
1Q 08 |
%
Rev
|
Δ%
|
||||||||||||||||
|
Volume
(million unit cases) (2)
|
554.2 | 517.7 | 7.1 | % | ||||||||||||||||
|
Average
price per unit case (2)
|
39.29 | 32.51 | 20.9 | % | ||||||||||||||||
|
Net
revenues
|
22,386 | 17,153 | 30.5 | % | ||||||||||||||||
|
Other
operating revenues
|
140 | 104 | 34.6 | % | ||||||||||||||||
|
Total
revenues
|
22,526 | 100 | % | 17,257 | 100 | % | 30.5 | % | ||||||||||||
|
Cost
of goods sold
|
12,083 | 53.6 | % | 8,986 | 52.1 | % | 34.5 | % | ||||||||||||
|
Gross
profit
|
10,443 | 46.4 | % | 8,271 | 47.9 | % | 26.3 | % | ||||||||||||
|
Operating
expenses
|
7,138 | 31.7 | % | 5,453 | 31.6 | % | 30.9 | % | ||||||||||||
|
Operating
income
|
3,305 | 14.7 | % | 2,818 | 16.3 | % | 17.3 | % | ||||||||||||
|
Other
expenses, net
|
330 | 186 | 77.4 | % | ||||||||||||||||
|
Interest
expense
|
637 | 508 | 25.4 | % | ||||||||||||||||
|
Interest
income
|
71 | 135 | -47.4 | % | ||||||||||||||||
|
Interest
expense, net
|
566 | 373 | 51.7 | % | ||||||||||||||||
|
Foreign
exchange loss (gain)
|
367 | (48 | ) | -864.6 | % | |||||||||||||||
|
(Gain)
on monetary position in Inflationary subsidiries
|
(86 | ) | (111 | ) | -22.5 | % | ||||||||||||||
|
Fair value
loss on derivative instruments
|
91 | 8 | 1037.5 | % | ||||||||||||||||
|
Integral
result of financing
|
938 | 222 | 322.5 | % | ||||||||||||||||
|
Income
before taxes
|
2,037 | 2,410 | -15.5 | % | ||||||||||||||||
|
Taxes
|
626 | 749 | -16.4 | % | ||||||||||||||||
|
Consolidated
net income
|
1,411 | 1,661 | -15.1 | % | ||||||||||||||||
|
Majority
net income
|
1,327 | 5.9 | % | 1,621 | 9.4 | % | -18.1 | % | ||||||||||||
|
Minority
net income
|
84 | 40 | 110.0 | % | ||||||||||||||||
|
Operating
income
|
3,305 | 14.7 | % | 2,818 | 16.3 | % | 17.3 | % | ||||||||||||
|
Depreciation
|
708 | 561 | 26.2 | % | ||||||||||||||||
|
Amortization
and other operative non-cash charges (3)
|
261 | 190 | 37.4 | % | ||||||||||||||||
|
EBITDA
(4)
|
4,274 | 19.0 | % | 3,569 | 20.7 | % | 19.8 | % | ||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Sales
volume and average price per unit case exclude beer results
(3)
Includes returnable bottle breakage expense.
(4) EBITDA
= Operating Income + depreciation, amortization & other operative non-cash
charges.
Since June 2008, we integrated Minas Gerais (Remil) in Brazil.
Since June 2008, we integrated Minas Gerais (Remil) in Brazil.
|
April
29, 2009
|
|
Page
19
|
Consolidated
Balance Sheet
Expressed
in million of Mexican pesos.
|
|
Mar 09
|
Dec 08
|
||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash
and cash equivalents
|
Ps. | 9,760 | Ps. | 6,192 | ||||
|
Total
accounts receivable
|
3,962 | 5,240 | ||||||
|
Inventories
|
4,732 | 4,313 | ||||||
|
Prepaid
expenses and other
|
2,470 | 2,246 | ||||||
|
Total
current assets
|
20,924 | 17,991 | ||||||
|
Property,
plant and equipment
|
||||||||
|
Bottles
and cases
|
1,531 | 1,622 | ||||||
|
Property,
plant and equipment
|
52,869 | 50,926 | ||||||
|
Accumulated
depreciation
|
(25,589 | ) | (24,388 | ) | ||||
|
Total
property, plant and equipment, net
|
28,811 | 28,160 | ||||||
|
Investment
in shares
|
1,949 | 1,797 | ||||||
|
Deferred
charges, net
|
1,232 | 1,246 | ||||||
|
Intangibles
assets and other assets
|
49,550 | 48,764 | ||||||
|
Total
Assets
|
Ps. | 102,466 | Ps. | 97,958 | ||||
|
Liabilities
and Stockholders' Equity
|
Mar 09
|
Dec
08
|
||||||
|
Current
Liabilities
|
||||||||
|
Short-term
bank loans and notes
|
Ps. | 8,206 | Ps. | 6,119 | ||||
|
Interest
payable
|
204 | 267 | ||||||
|
Suppliers
|
7,222 | 7,790 | ||||||
|
Other
current liabilities
|
8,287 | 7,157 | ||||||
|
Total
Current Liabilities
|
23,919 | 21,333 | ||||||
|
Long-term
bank loans
|
12,785 | 12,455 | ||||||
|
Pension
plan and seniority premium
|
984 | 936 | ||||||
|
Other
liabilities
|
6,330 | 5,618 | ||||||
|
Total
Liabilities
|
44,018 | 40,342 | ||||||
|
Stockholders'
Equity
|
||||||||
|
Minority
interest
|
1,831 | 1,703 | ||||||
|
Majority
interest:
|
||||||||
|
Capital
stock
|
3,116 | 3,116 | ||||||
|
Additional
paid in capital
|
13,220 | 13,220 | ||||||
|
Retained
earnings of prior years
|
38,186 | 33,935 | ||||||
|
Net
income
|
1,327 | 5,598 | ||||||
|
Accumulated
other comprehensive income
|
768 | 44 | ||||||
|
Total
majority interest
|
56,617 | 55,913 | ||||||
|
Total
stockholders' equity
|
58,448 | 57,616 | ||||||
|
Total
Liabilities and Equity
|
Ps. | 102,466 | Ps. | 97,958 | ||||
|
April
29, 2009
|
|
Page
20
|
Mexico
Division
Expressed
in million of Mexican pesos(1)
|
|
1Q 09 |
%
Rev
|
1Q 08 |
%
Rev
|
Δ%
|
|||||||||||||||
|
Volume
(million unit cases)
|
272.4 | 264.0 | 3.2 | % | ||||||||||||||||
|
Average
price per unit case
|
29.78 | 29.31 | 1.6 | % | ||||||||||||||||
|
Net
revenues
|
8,110 | 7,737 | 4.8 | % | ||||||||||||||||
|
Other
operating revenues
|
31 | 33 | -6.1 | % | ||||||||||||||||
|
Total
revenues
|
8,141 | 100.0 | % | 7,770 | 100.0 | % | 4.8 | % | ||||||||||||
|
Cost
of goods sold
|
4,064 | 49.9 | % | 3,811 | 49.0 | % | 6.6 | % | ||||||||||||
|
Gross
profit
|
4,077 | 50.1 | % | 3,959 | 51.0 | % | 3.0 | % | ||||||||||||
|
Operating
expenses
|
2,743 | 33.7 | % | 2,636 | 33.9 | % | 4.1 | % | ||||||||||||
|
Operating
income
|
1,334 | 16.4 | % | 1,323 | 17.0 | % | 0.8 | % | ||||||||||||
|
Depreciation,
amortization & other operative non-cash charges (2)
|
432 | 5.3 | % | 432 | 5.6 | % | 0.0 | % | ||||||||||||
|
EBITDA
(3)
|
1,766 | 21.7 | % | 1,755 | 22.6 | % | 0.6 | % | ||||||||||||
(1) Except
volume and average price per unit case figures.
(2)
Includes returnable bottle breakage expense.
(3) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
Latincentro
Division
Expressed
in million of Mexican pesos(1)
|
|
1Q 09 |
%
Rev
|
1Q 08 |
%
Rev
|
Δ%
|
|||||||||||||||
|
Volume
(million unit cases)
|
132.7 | 130.2 | 1.9 | % | ||||||||||||||||
|
Average
price per unit Case
|
60.63 | 41.05 | 47.7 | % | ||||||||||||||||
|
Net
revenues
|
8,046 | 5,346 | 50.5 | % | ||||||||||||||||
|
Other
operating revenues
|
3 | 5 | -40.0 | % | ||||||||||||||||
|
Total
revenues
|
8,049 | 100.0 | % | 5,351 | 100.0 | % | 50.4 | % | ||||||||||||
|
Cost
of goods sold
|
4,377 | 54.4 | % | 2,907 | 54.3 | % | 50.6 | % | ||||||||||||
|
Gross
profit
|
3,672 | 45.6 | % | 2,444 | 45.7 | % | 50.2 | % | ||||||||||||
|
Operating
expenses
|
2,628 | 32.7 | % | 1,653 | 30.9 | % | 59.0 | % | ||||||||||||
|
Operating
income
|
1,044 | 13.0 | % | 791 | 14.8 | % | 32.0 | % | ||||||||||||
|
Depreciation,
amortization & other operative non-cash charges (2)
|
327 | 4.1 | % | 190 | 3.6 | % | 72.1 | % | ||||||||||||
|
EBITDA
(3)
|
1,371 | 17.0 | % | 981 | 18.3 | % | 39.8 | % | ||||||||||||
(1) Except
volume and average price per unit case figures.
(2)
Includes returnable bottle breakage expense.
(3) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
|
April
29, 2009
|
|
Page
21
|
Mercosur
Division
Expressed
in million of Mexican pesos(1)
Financial
figures include beer results
|
|
1Q 09 |
%
Rev
|
1Q 08 |
%
Rev
|
Δ%
|
|||||||||||||||
|
Volume
(million unit cases) (2)
|
149.1 | 123.5 | 20.7 | % | ||||||||||||||||
|
Average
price per unit case
(2)
|
37.71 | 30.33 | 24.3 | % | ||||||||||||||||
|
Net
revenues
|
6,230 | 4,070 | 53.1 | % | ||||||||||||||||
|
Other
operating revenues
|
106 | 66 | 60.6 | % | ||||||||||||||||
|
Total
revenues
|
6,336 | 100.0 | % | 4,136 | 100.0 | % | 53.2 | % | ||||||||||||
|
Cost
of goods sold
|
3,642 | 57.5 | % | 2,268 | 54.8 | % | 60.6 | % | ||||||||||||
|
Gross
profit
|
2,694 | 42.5 | % | 1,868 | 45.2 | % | 44.2 | % | ||||||||||||
|
Operating
expenses
|
1,767 | 27.9 | % | 1,164 | 28.1 | % | 51.8 | % | ||||||||||||
|
Operating
income
|
927 | 14.6 | % | 704 | 17.0 | % | 31.7 | % | ||||||||||||
|
Depreciation,
Amortization & Other operative non-cash charges (3)
|
210 | 3.3 | % | 129 | 3.1 | % | 62.8 | % | ||||||||||||
|
EBITDA
(4)
|
1,137 | 17.9 | % | 833 | 20.1 | % | 36.5 | % | ||||||||||||
(1) Except
volume and average price per unit case figures.
(2) Sales
volume and average price per unit case exclude beer results
(3)
Includes returnable bottle breakage expense.
(4) EBITDA
= Operating Income + Depreciation, amortization & other operative non-cash
charges.
Since June 2008, we integrated Minas Gerais (Remil) in Brazil.
Since June 2008, we integrated Minas Gerais (Remil) in Brazil.
|
April
29, 2009
|
|
Page
22
|
SELECTED
INFORMATION
For
the three months ended March 31, 2009 and 2008
Expressed
in million of Mexican pesos.
|
1Q
09
|
1Q
08
|
||||||||
|
Capex
|
710.3 |
Capex
|
521.4 | ||||||
|
Depreciation
|
708.0 |
Depreciation
|
561.0 | ||||||
|
Amortization
& Other non-cash charges
|
261.0 |
Amortization
& Other non-cash charges
|
190.0 |
VOLUME
Expressed
in million unit cases
|
1Q
09
|
1Q
08
|
|||||||||||||||||||||||||||||||||||||||
|
Sparkling
|
Water (1)
|
Bulk Water (2)
|
Still (3)
|
Total
|
Sparkling
|
Water (1)
|
Bulk Water (2)
|
Still (3)
|
Total
|
|||||||||||||||||||||||||||||||
|
Mexico
|
196.1 | 14.9 | 47.1 | 14.3 | 272.4 | 203.4 | 13.7 | 41.9 | 5.0 | 264.0 | ||||||||||||||||||||||||||||||
|
Central
America
|
27.0 | 1.5 | 0.0 | 2.4 | 30.9 | 29.4 | 1.5 | 0.0 | 2.0 | 32.9 | ||||||||||||||||||||||||||||||
|
Colombia
|
40.4 | 2.3 | 2.3 | 3.6 | 48.6 | 41.2 | 2.7 | 2.6 | 0.7 | 47.2 | ||||||||||||||||||||||||||||||
|
Venezuela
|
49.0 | 2.0 | 0.6 | 1.6 | 53.2 | 45.9 | 2.7 | 0.0 | 1.5 | 50.1 | ||||||||||||||||||||||||||||||
|
Latincentro
|
116.4 | 5.8 | 2.9 | 7.6 | 132.7 | 116.5 | 6.9 | 2.6 | 4.2 | 130.2 | ||||||||||||||||||||||||||||||
|
Brazil
|
93.8 | 5.6 | 0.6 | 3.0 | 103.0 | 69.0 | 5.4 | 0.0 | 1.1 | 75.5 | ||||||||||||||||||||||||||||||
|
Argentina
|
42.9 | 0.4 | 0.2 | 2.6 | 46.1 | 45.7 | 0.6 | 0.0 | 1.7 | 48.0 | ||||||||||||||||||||||||||||||
|
Mercosur
|
136.7 | 6.0 | 0.8 | 5.6 | 149.1 | 114.7 | 6.0 | 0.0 | 2.8 | 123.5 | ||||||||||||||||||||||||||||||
|
Total
|
449.2 | 26.7 | 50.8 | 27.5 | 554.2 | 434.6 | 26.6 | 44.5 | 12.0 | 517.7 | ||||||||||||||||||||||||||||||
(1)
Excludes water presentations larger than 5.0 Lt
(2) Bulk
Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging
presentations
(3) Still
Beverages include flavored water
|
|
·
|
Volume
of Brazil, Mercosur division, and Consolidated includes three months of
REMIL’s operation, accounting for 27.5 million unit cases. Of this volume,
sparkling beverages represent close to
95%.
|
|
April
29, 2009
|
|
Page
23
|
March
2009
Macroeconomic
Information
|
Inflation
(1)
|
||||||||||||||||||||
|
|
Foreign Exchange Rate (local currency per US Dollar) (2)
|
|||||||||||||||||||
|
LTM
|
1Q 2009
|
Mar 09
|
Dec 08
|
March 08
|
||||||||||||||||
|
Mexico
|
6.05 | % | 1.03 | % | 14.3317 | 13.5383 | 10.6962 | |||||||||||||
|
Colombia
|
6.15 | % | 1.94 | % | 2,561.21 | 2,243.59 | 1,821.60 | |||||||||||||
|
Venezuela
(3)
|
28.18 | % | 4.87 | % | 2.15 | 2.15 | 2.15 | |||||||||||||
|
Brazil
|
5.92 | % | 1.15 | % | 2.3152 | 2.3370 | 1.7491 | |||||||||||||
|
Argentina
|
6.25 | % | 1.61 | % | 3.7200 | 3.4530 | 3.1680 | |||||||||||||
(1)
Source: Mexican inflation is published by Banco de México (Mexican
Central Bank).
(2)
Exchange rates at the end of period are the official exchange rates published by
the Central Bank of each country.
(3) In
Venezuela since January 1, 2008, the local currency is 'Bolivar Fuerte',
'Bolivar' the former currency, was divided by one thousand.
|
April
29, 2009
|
|
Page
24
|